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BUS 300: Critical Thinking and Persuasion for business Writing Assignment #2 Fred and Wilma Flintstone Re: Options for Opening a Restaurant at Bedrock Date: September 14, 2016 ------------------------------------------------------------------------------------------------------- In view of the proposed opening for a restaurant at Bedrock, two (2) alternative options have been evaluated, as summarized as follows: Option 1: Take a 5-year lease at $1,200 per month for a storefront property on Main Street in Bedrock’s theater district.

Option 2: Take a one-year lease at $600 per month on a charming farmhouse. The selection of the most viable option depends on the following concerns: (1) there is limited amount of capital; (2) there is a need to generate income immediately; and (3) the restaurant needs to be distinctive to attract a steady clientele. At the onset, given limited funds, the most viable option would be to take the charming farmhouse which would only entail incurring a lease investment of $7,200 for the one-year period versus $14,400.

Establishing the restaurant at a charming farmhouse would save as much as $7,200. The first option is perceived to be more attractive at the onset; yet, the main concerns have to be evaluated: the limited capital and the distinctive image. The first criteria manifests weakness since the monthly lease is double than the second option. Since there is limited amount of capital as an important concern, spending double for a restaurant on Main Street is exorbitant. In addition, since the lease contract is for five years, it would put greater risk in terms of capital investment especially if the restaurant would turn to be unprofitable.

Concurrently, the strength of the location is that it is perceived as strategic given that it is located in a commercial district with other restaurants, movie houses, and theatres. If the government plans to further develop the place, it would definitely attract tourists, workers, and local folks. Bedrock, a city of about a million people, has a lot of potential clients who could patronize the restaurant. In addition, although there are already 10 restaurants, there is only one restaurant serving French food.

On the other hand, the strength of locating the restaurant at Bedrock is its ability to project a distinctive French image with an outdoor café. Yet, locating it at Bedrock has parking as its weakness. Since it is a busy district, the safety and security of bringing along children might be compromised, especially if no parking is available. If capital is not restricted, Bedrock is the most viable location for the restaurant. For option 2, where the restaurant could be located at a charming farmhouse, the alternative is evaluated using the following criteria: capital and distinctive image.

There is evident strength that opening a restaurant at a charming farmhouse would meet the limited capital requirements. Likewise, there is an option to purchase the property after the one-year lease period. There is weakness in locating the restaurant at the charming farmhouse given the considerably lesser population or target clientele; as compared to downtown’s theater district. As such, this could pose tendencies for generating higher income in a shorter time frame. Further, in terms of aiming for a distinctive image, the objective of featuring rustic French cooking could be seen as risky in the area given that no historical experiences from other restaurants serving French cooking is available.

Only one nearby restaurant is found in the area which reportedly serves Thai food. On the other hand, the strength of establishing the restaurant at the charming farmhouse is the opportunity to build competitive advantage and a distinct image as the first restaurant offering French cuisine. There are many people want to experience rustic life, the charming farmhouses will attract them. As such, establishing a restaurant at a charming farmhouse appears to be the most viable option since it meets the limited capital requirement as well as the ability to build a distinctive image.

In conclusion, if the restaurant is established on the Main Street at Bedrock’s theatre district, the dominant strengths would be the opportunity to attract a greater number of potential clientele. However, the major weakness is its failure to meet the limited capital requirement, which is a significant factor in the decision. On the other hand, the greatest strength of establishing the restaurant at the charming farmhouse is the opportunity to project a distinctive image and attract a steady clientele.

In addition, the second option meets the limited capital requirement. The only weakness of the second option is the initial slow return on investment given the smaller number of potential clientele, when compared to the theatre district. As such, after weight the strengths against weaknesses of each of the two options, it is believed that the second option is more viable since the strengths far greater outweigh the weaknesses that were noted.